1. Field of the Invention
The present invention relates to client-server based computer architectures and, more specifically, to an electronic client-server system configured to facilitate the generation of real estate values in an efficient manner.
2. Background Information
Mortgage lenders make loans to individuals based on several criteria including a valuation of the residential real property, such as a home or residence, that is securing the loan. An appraisal is often performed on behalf of the lender to determine an appraised value of the property. The appraisal is typically performed by a licensed or otherwise legally certified appraiser. The appraiser is typically licensed or certified within his or her state and/or locality. Appraisers may also be licensed or certified through various certifying entities on a national or regional basis.
The appraiser conducts an inspection of the condition of the interior and exterior of the property, and may measure each room or the foundation to determine an approximate square footage of the property. The appraiser also may take photographs of the exterior and interior of the property. The appraiser also reviews several comparable properties in order to select those that form an appropriate basis for comparison to the property being appraised. The appraiser typically uses the completed sales prices of comparable properties that have recently sold to help determine a value for the subject property. The appraiser also may consider the period of time that has elapsed between the sale of the comparable properties and the current date in adjusting the sales prices of the comparable properties to determine a value of the subject property. The appraiser may gather information on the city or town in which the property is located, and review the deed for the property. The appraiser will then prepare a detailed report for the lender including the home's appraised value. This detailed report and the process by which it is created is known as a “full” appraisal.
In some circumstances, an appraiser may be asked to perform what is known as a “drive-by” appraisal. A “drive by” appraisal is similar to the “full” appraisal described above except that, in the “drive by” appraisal, the appraiser does not conduct an interior inspection of the subject property. A drive-by appraisal can be utilized in a variety of situations, such as where the credit or other risks attendant to the loan are less, and thus the need for a high-level of accuracy in the valuation process is reduced. In general, a drive-by appraisal takes significantly less time to complete and costs considerably less than a full appraisal.
More recently, automated valuation systems have been developed. These automated systems typically use proprietary computer-based models or algorithms to match a subject property to several properties stored in a database that are deemed by the model or algorithm to be comparable. These systems may be accessible through websites, such as www.zillow.com and www.electronicappraiser.com, among others. These systems are typically referred to as Automated Valuation Models (AVMs). While such automated systems have become increasingly popular, presumably due to their low cost, the “values” they return have been criticized as inaccurate.